Skillz files lawsuit against Tether Studios over contract dispute

Skillz Inc. (NYSE: SKLZ) filed a lawsuit in Delaware Chancery Court on September 1, 2025, against Tether Studios LLC and Tether Games Inc. following a contract termination dispute, according to a company statement.

Tether provided notice on August 29, 2025, that it was terminating all agreements with Skillz effective September 1, 2025. The termination covers various agreements including developer terms and conditions and a January 15, 2020 amendment filed with the company's 2023 annual report.

Under the agreements, Skillz provides Tether with a license to use its Software Development Kit for monetization services related to Tether-developed games. The companies share revenue generated from entry fees paid by users.

Tether cited termination for convenience in its notice while also asserting grounds for cause-based termination effective September 28, 2025, if the convenience termination is not upheld by a tribunal.

The agreements include restrictions preventing removal of two games, Solitaire Cube and 21 Blitz, from Skillz's platform for 18 months following termination. During this period, Skillz may host paid competitions for these games but is not required to do so.

Skillz is seeking injunctive and declaratory relief, claiming Tether breached the agreements and that the termination notice is invalid. The company disputes Tether's allegations regarding grounds for cause-based termination.

The company stated it intends to defend its position but cannot provide assurances regarding the lawsuit's outcome or potential business impact.

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